Disclaimer: Contracts are legal documents that are enforceable through a court of law. Because of that, they should be taken seriously. The advice I am going to provide in this article is for informational purposes only, to get you thinking about contracts and their use in freelancing, and I cannot be held liable for the advice presented in these series. You should seek an attorney to review your contract to make sure it can hold water.
What is a contract?
Basically in the eyes of a freelancer, a contract is a protective measure to ensure a working relationship between them and the client. Freelancers use them for a variety of reasons, ranging from clarification of project specs with the client to making sure they will get paid and when. Both parties, being the freelancer and the client, must sign the contract to state their acceptance of the terms and conditions laid out in the contract.
In the United States, you must be 18 years old or older before you can sign any type of legal document, such as contracts. If you are not 18 years old, what can you do to protect yourself? There are limited options to protect yourself while you are under 18, but one of the most common is to take full payment and to keep email records. Other than that, seeking the advice of a lawyer is best.
As I stated before, contracts are legal documents and are enforceable by law. If either party breaks the agreement, the other party can take them to court to rectify the issue. Because both parties signed the agreement, they are held liable for their parts of the contract.
What are the basics that should be put in the contract?
In a bare-bones contract, there should be certain things that must be in place. Date, names and addresses of the parties, project details, payment details, and copyright details, just to name a few. We will discuss in more detail about the various parts of the contracts throughout the series.
Above all, you should put in clauses that protect you and your work. Clauses that include payment terms and copyright terms are the most common, but if there is something specific to your freelancing, such as working on client servers, then clauses about those types of situation should be covered as well.
When should you have a client sign a contract?
Contracts should be the final step of the sales process, meaning that a contract should be signed and both parties have a copy before work begins. Most clients in a professional setting already should have no issue signing contracts, however some individuals and those that are starting businesses may not feel comfortable signing a contract.
It is important to stick to signing the contract. I have had a few clients want to bypass this step, so it is important to stick to your guns and require the contract to be signed before you start work.
How long does the contract stay in effect?
For most freelancers and situations, the contract will stay in place until the project is completed and paid in full. However there are other time periods that freelancers can use as well, such as three months, six months, a year, or for as long as you and the client are working together (the life of the relationship). You should state in the contract how long the contract is valid for so that both parties know when the contract can no longer be used as a protective measure.
As with this part, all advice is for informational purposes only, so you should seek a lawyer to help you with your contract.
One thing I make sure I NEVER do is put in actual dates. I usually say, “in a timely manor.” I know that has protected me at least once.
I agree. The only actual date I use is the date that you sign the contract. But this is something I will cover in the upcoming parts. 😀
There’s some good information here for anyone getting started with the business side of freelancing. I’m looking forward to the rest!
Oh yes, contracts are SOOO important! I had a client recently who was a little shy of signing anything legal-like. I think it scared her that I required a contract. Her thought was, “can’t we just agree to trust eachother?” However, once I explained that the contract was really to protect HER rights (what if someone stole her character and made toys that made a million based off it? She’d have no proof that she owned the rights.), she understood and happily signed it. I think that a good freelancer should be able to simply explain the parts of a contract so that it doesn’t scare clients off, yet savvy enough to protect themselves as well. Another time, my contract saved me when the client complained that I had gone past the deadline date and asked for a discount. I calmly pointed out that my contract states that if any major changes are requested by the client that change the scope of the project, (and this is exactly what happened) then I have the right to extend the deadline as long as I notify them. So in the end, it worked out fine because I was clear.
So always be sure to state the facts and terms clearly! It’ll save your butt! 🙂